LONG BEACH — The City Council voted 6-0 Tuesday to allow municipal properties to continue to be included in a downtown taxing district that could expand to include homes as well.

The Downtown Property and Business Improvement District, or PBID, expires Dec. 31 and pays for services not covered by general tax dollars.

State law requires parties who will pay more than 50 percent of the fee, which is based on assessment value, to indicate their support by petition before the district can advance toward an eventual property owner vote.

The Long Beach Civic Center, main library and associated parking structures are part of the PBID, making the city one of the larger stakeholders. The cost to the city will be $389,493, but $172,710 of that will be paid by the operator of the Pike at Rainbow Harbor, according to a city report.

In March, the Downtown Long Beach Associates, which administers the tax, voted to move forward on a controversial proposal to assess the tax on residential properties. The decision will be up to a vote of property owners in the district.

Councilwoman Suja Lowenthal, who was criticized during her recent re-election campaign for not taking a stance on the plan, spoke in favor of signing the petition.

"I think the city has a vested interest in protecting its investments in the downtown as a large property owner, and the PBID supports this," Lowenthal said.

Councilman Robert Garcia and Councilwoman Gerrie Schipske recused themselves from voting on the PBID resolution. Garcia said he owned property within the district; Schipske's partner owns land in the district, according to Mayor Bob Foster.

Councilwoman Rae Gabelich was absent.

Recreational fees audited

The council also received an audit on the collection of recreational fees in the city.

City Auditor Laura Doud said last week that hundreds of thousands of dollars have gone uncollected due to inconsistent gathering and recording practices in the Parks, Recreation and Marine Department.

Doud recommended that management implement a plan to centralize collections using technology and train employees to handle cash.

The report was requested by department Director George Chapjian after he was appointed to the position last year.

Auditors found $392,432 in outstanding fees. The majority, $233,535, were owed by adult sports leagues that hadn't been pursued for permit charges.

Chapjian said Tuesday that $111,000 of the balance is considered current, and the department is taking debt-collection steps that include withholding sports league permits.

The Parks, Recreation and Marine Department collected $6.6 million in fees and charges in 2011.

Records were often kept manually, with the same employees able to receive, record and deposit cash, a process auditors warned was open to fraud.

Council members applauded Chapjian for asking for the the review.

"It's not a weakness, but a strength to acknowledge where we can improve," said Councilman James Johnson.